Global Sources: A dot-com success story

Jakarta (JP): There are many dot-coms doing business in Indonesia, but only a few will survive successfully. Global Sources is one of those successes. It has been successful in establishing a community with an exclusive membership, maximizing Internet advantages and posting US$100 billion worth of transactions per year. We can put this company in the New Economy Society.

A month ago, Batavia Furniture joined the Global Sources' community (www.globalsources.com). It has accepted many Request for Information (RFI), of which five are almost finalized deals. There have been thousands of companies dealing in many fields facing the same experience. They are, at least, successful in maximizing the Internet advantages for marketing.

You can imagine how large the Internet access is for finding prospective buyers worldwide. Even though the company address is not on the map, as long as there is a telephone line, a modem and a computer, anyone can access the Internet. Five years ago, for a company to get the same results as now, it needed months even years because communications were done by telephone, facsimile and post to send out product information. Now, all you have to do is click a couple of times and all the information related to your business can be sent out.

With regard to the furniture company mentioned, it can get the responses it does from buyers because Global Sources has informed all its members about the new products it offers. To date, 219,000 buyers have joined Global Sources. Most of the buyers are well-known companies like K-Mart, GAP, Gemex Trading, Makro and Superstore, spending a combined total of US$100 billion in this community last year.

Global Sources has been collecting buyers since 1971, when it was first established in Hong Kong. This was long before the Internet; carrying out its business just as it is doing right now, as a mediator between buyers and sellers. Before the Internet, product information was given in the form of catalogs. In 1985, this catalog was issued on a CD-ROM, making it easier for buyers familiar with computers to get the information. In 1995, Global Sources developed an e-catalog through the Internet. All three catalogs are still in use.

That furniture store is one of the manufacturers in the catalog. Like other companies, when it joins Global Sources, its information is spread to all potential buyers worldwide by e- mail. And the good thing is, this e-mail is provided with Global Product Alert. So, every time new information is sent to buyers, there will be a sign that alerts them.

Companies also do not need to worry whether buyers are reading the information. Because this e-mail is provided with "compare facilities", a small program that is able to compare all product information based on the category the buyer is interested in. For example, information is based on the price, name of the company, supplier company, etc. So, if that furniture company gets a lot of orders, maybe the buyers have compared its prices against all others, and that furniture company is the best one.

Actually there is no difference between Global Sources and other dot-coms. But, if we look passed this, maybe we can conclude that Global Sources is one of the biggest successes of the New Economy Society.

Global Sources now has offices and branches in 60 cities worldwide. The Jakarta Branch, PT Global Jaring Nusantara, was officially open in June 2000, so Indonesian entrepreneurs could join the Global Sources community easily, either as buyers or suppliers. But, to get the information is not cheap, there is a charge to join this community. It is not for a company that is not serious in marketing -- the charges can reach $20,000 per year! -- Jon Minofri